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Not Straight Up, But Up

Published on: 15:55PM Apr 16, 2010
 To state the obvious, the days since my last post have brought very nice buying indeed. We are now officially in a bull market in beans, corn and maybe even wheat. It is less that wheat is not a bull, but more how strong is that bull; likely, not a very strong beast.

 

For now, beans should manage at least 1090, corn 430 and wheat 600, all basis July. In the short term, look for wheat to struggle around 520, corn is likely to bounce off 380, lingering for days, perhaps even two or three weeks, and beans are likely to falter at 989 and again at 1003. Two steps – or even three or four – forward, one step back, until and unless the weather turns ugly.

 

I probably should remind you, and myself, that beans taking a rest, as they may soon, is likely to persuade corn and wheat that they can rest as well. The players do tend to watch one another.

 

Here’s hoping all the family farms have bumper crops while all the larger corporate farms do poorly enough to send prices to good profit levels. Have a great weekend.

 

ron@c-and-d.com